Nixon Digital

Reasons for prioritising SaaS spend management​

Software-as-a-Service (SaaS), developed and introduced in 2000, aims to provide a cost-effective alternative to traditional IT installations that require the IT landscape to be purchased, installed and maintained by IT departments or by external IT professionals. Three pillars of SaaS use can be identified that will also help companies in the decision-making phase to purchase a SaaS.

What is software-as-a-service?

Software-as-a-service (SaaS) is a component of cloud computing. It is based on the concept that a company’s software and IT infrastructure are managed by a third-party provider IT, which is offered to the customer as a service. The SaaS model represents a service that the customer can use. To use online services, you need a device. Users can use the SaaS via a web browser. The SaaS model saves the service user some of the acquisition and operating costs. However, the company is responsible for full management and additional services such as ongoing maintenance and updates.

What does SaaS expense management involve?

SaaS spend management is concerned with measuring business costs and evaluating the performance of their SaaS inventory. Enterprise spend is increasing day by day. Moreover, the number of SaaS solutions is increasing. Enterprises need to be efficient with their SaaS spend to get the most out of their budgets.

What are the critical pillars of SaaS spend management?

Implementation and control

Companies save their own IT architecture, development time and coordination with other IT systems. As a rule, the SaaS provider ensures that everything runs smoothly. The result is a permanently usable system. The only requirement for using and accessing the SaaS system is a stable internet connection and a functioning computer. With SaaS, you can run your campaigns around the clock, even with remote access to the system. Companies must ensure that connections are always secure, i.e., encrypted. Therefore, encryption levels should be carefully compared with those of other providers.

On the management side, providers need to ensure that internal and external communication can be done through the same platform. Furthermore, automatic and routine backups of data should be planned. Adjustments and enhancements should be made by the company itself.

Flexibility and accessibility.

In essence, an on-demand solution offers much more flexibility than a solution that is managed, developed and maintained on-site. The term flexibility is used not only to describe flexible use and customisable subscription models, but also the ability to manage and export data. The presentation and export of data as well as user-friendliness must also be taken into account. In addition, employees must be able to use the software over a longer period of time.

The use of SaaS is only flexible and sensible if the company can use the software flexibly and independently of tasks. This means that employees are not subject to any additional restrictions. Furthermore, SaaS and in a other way a single source of truth is particularly suitable for companies that are in a growth process. Individual applications and functions can be used independently and added or removed as needed. Adapting to new requirements is cost-effective and not a waste of time. It is worth mentioning that software updates can be taken over by the provider at no additional cost.

Cost saving

A major advantage of SaaS use is the cost benefit. Before a company switches from on-premises software licences to SaaS, it should be clear about the expected costs. Providers are usually transparent enough to list and explain all costs from the outset. For example, internal departments of IT usually spend more than half of their existing maintenance budget on internal IT environments. Other maintenance and repair costs can also be unpredictable. The SaaS concept is particularly recommended for companies in the growth phase. In the early stages of a company, huge investments are made that could have been avoided at the beginning. With detailed reports, every user of the software can get an overview of the various variable and fixed costs of the company. Particular attention is paid to variable costs, as they can represent additional costs on the one hand, but also time and much needed flexibility on the other.

SaaS allows companies to focus more on their core areas by avoiding their own working capital risks and providing flexibility by matching their own IT capabilities and resources to their needs. You then tailor your own IT skills and resources as needed and have more time for your own customers. It is important to understand that the software used must be efficient and effective.

SaaS offers benefits that can be adapted to any business in any industry. Businesses are moving massively towards SaaS platforms where they can easily hire services and optimise their workload in other areas. Other advantages are that there is no cost for hardware, it does not need to be installed and maintained. In addition, there are no expensive recurring licence fees. SaaS, as already mentioned, offers convenience in compatibility.

Nixon Platform as your SaaS-platform

If you are looking for a SaaS platform, we have the right solution for your IT infrastructure. Through our Nixon Digital Website Portfolio Compliance Management Platform. A website portfolio management platform equals greater efficiency.

The Nixon platform provides a comprehensive portfolio management solution for your website, allowing you to keep track of all your digital properties in one place. With Nixon, you can easily access a bird’s eye view of all your data, enabling you to identify and resolve compliance, privacy and security issues. Nixon automatically maps results based on predefined rules and audits your entire site portfolio to ensure your data is accurate, consistent, and easily accessible. With Nixon, you can make the hidden visible and take back control of your digital properties with real-time dashboards and actionable tasks that integrate with your preferred workflow or ticketing system. Get in touch to see what we can do for you. You can also request a demo of our platform.